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Taiwan says asking chip corporations to assist ease auto chip scarcity By Reuters

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© Reuters. Taiwan Semiconductor Manufacturing Co (TSMC) logo in Hsinchu

TAIPEI (Reuters) – The Taiwanese Ministry of Economic Affairs said Sunday it had received diplomatic inquiries to alleviate the shortage of chips for the automotive sector and asked local technology firms for “full support”.

Automakers around the world are closing assembly lines because of a global semiconductor shortage that has been exacerbated in some cases by the former Trump administration’s actions against key Chinese chipmakers, industry officials said.

The shortage affected Ford Motor (NYSE 🙂 Co, Subaru (OTC 🙂 Corp, Toyota Motor (NYSE 🙂 Corp., Volkswagen (DE :), Nissan (OTC 🙂 Motor Co Ltd., Fiat Chrysler Automobiles and other automakers.

The government in Taiwan, home of the world’s largest contract chip manufacturer Taiwan Semiconductor Manufacturing Co. Ltd. (TSMC) said foreign governments contacted them about the problem.

“Since the end of last year, diplomatic channels have actually received inquiries from relevant countries due to the shortage of automobile chips,” said the Ministry of Economic Affairs after media reports that Federal Minister of Economics Peter Altmaier had written to Taiwan’s government about the problem.

The ministry said it had not yet received the letter from Germany and could not comment on its contents.

The ministry said that major international automakers are not direct customers of Taiwanese semiconductor chipmakers, but that other automotive chipmakers are placing orders with Taiwanese manufacturers and selling them to automakers.

“The relevant supply and demand situation is also closely related to the plans of the automobile chip factories to reduce stocks in the off-season,” said the ministry.

She said she had started talks with domestic chip suppliers upon request from other countries and “asked chip manufacturers to provide full support.”

TSMC said in a statement that the problem of chip shortages is very important to them for auto companies.

“It is our number one priority and TSMC is working closely with our automotive customers to resolve their capacity support issues,” it said.

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